Indian economy poised to register high growth amid global headwinds: RBI Governor

New Delhi: Despite an unfavourable and challenging external environment, the Indian economy has shown remarkable resilience and is poised to register high growth, RBI Governor Sanjay Malhotra has said.

According to him, the headroom provided by the inflation outlook has allowed us to remain growth supportive.

“We will continue to meet the productive requirements of the economy in a proactive manner while ensuring macroeconomic stability,” he said in the Central Bank’s December Bulletin.

Saying that we are in the last month of an eventful and a challenging 2025, “we look back at the year so far with satisfaction”.

The economy witnessed robust growth and benign inflation; the banking system further consolidated and the regulatory framework was refined to strengthen the financial system, enhance ease of doing business, and improve consumer protection, Malhotra wrote.

At the same time, “we approach the new year with hope, vigour and determination to further support the economy and accelerate progress,” he added.

Since the October policy, the Indian economy has witnessed rapid disinflation, with inflation coming down to an unprecedentedly low level.

For the first time since the adoption of flexible inflation targeting (FIT), average headline inflation for a quarter at 1.7 per cent in Q2 2025-26, breached the lower tolerance threshold (2 per cent) of the inflation target (4 per cent). It dipped further to a mere 0.3 per cent in October 2025.

“On the other hand, real GDP growth accelerated to 8.2 per cent in Q2, buoyed by strong spending during the festive season which was further facilitated by the rationalisation of the goods and services tax (GST) rates. Inflation at a benign 2.2 per cent and growth at 8.0 per cent in H1 2025-26 present “a rare goldilocks period”, said Malhotra.

Looking ahead, domestic factors such as healthy agricultural prospects, continued impact of GST rationalisation, benign inflation, healthy balance sheets of corporates and financial institutions and congenial monetary and financial conditions should continue to support economic activity, Malhotra highlighted.

“Continuing reform initiatives would further facilitate growth”, he added.

IANS